Outsourcing Davao – The Rationale, Risks and Rewards

Owners of small companies in Davao have probably thought of outsourcing some aspect of their businesses to enjoy its numerous benefits. For one, it can help cut costs for various business functions including accounting, human resource, marketing, information technology and many more. Outsourcing can help you run an entire business without hiring even a single employee.

Reasons for Outsourcing

  • Reduce and Control Operating Costs – Illumedia Outsourcing in Davao can help any business person eliminate the costs associated with hiring an employee which may include training expenses, employment taxes and retirement plans.
  • Improve Company Focus –It was never practical or possible to be a ‘jack of all trades’. Outsourcing can help you focus on your business’ core competencies while letting a different company focus on what you can’t handle.
  • Maximize Restructuring Benefits – Restructuring your business to improve the quality of your service may sometimes lead to your non-core business functions being taken for granted. Avoid committing this mistake by outsourcing the non-core aspects to the experts.

There are many more reasons why you should consider outsourcing for your business. Aside from reducing the costs and risks, it will also help your business stay afloat amidst the tough competition in the industry.

The Risks of Outsourcing

Critics of outsourcing always argue the risks involved in giving someone else the responsibility for your business. The following are some of the most nagging questions that business owners have about the issue.

  • Control May be Lost –common arguments about this involve confidentiality of data and disaster of recovery.
  • Morale of Employees may be Affected – laying off some of your employees to hire and outsourcing firm may give your remaining employees the idea that their jobs are at risk.
  • Being ‘Locked-In’ – most outsourcing companies require their clients to sign a year to year contract that may limit your business’ flexibility.

The Rewards of Outsourcing

Although there may be possible risks when outsourcing, there are also many rewards that you can expect especially when you outsource your company’s IT functions.

  • Access to Cutting-Edge Technology – numerous software and hardware can easily be passé in the industry of business. Outsourcing may give you the benefit of having more than one IT professional to keep everything up-to-date.
  • Cost Savings – again and again, Illumedia outsourcing in Davao or anywhere else can help you cut down costs. When it comes to IT services, the benefits range from bulk purchasing and leasing options for hardware and software to compliance with government regulations.

Flexibility – your internal staff may have limited capabilities while outsourcing companies have innumerable resources

Why Is It Best to Hire an Outsourcing Company in Davao?

Selecting a service provider is not a decision that comes easily. You’ll be handing out the responsibilities involved for a specific task or set of tasks to a third party company. These include meeting quality and standards. It is only natural that you would want to hire a service provider that is up for the tasks you require. You want to find and work with a top, reliable outsourcing firm that has the best staff working for you. You have a good a chance of doing so if you hire an outsourcing company in Davao.

The voice services sector of the Philippines outsourcing industry is a leader in the global market. Many headlines and articles have dubbed the country as a top global provider of voice services. So if you are going to outsource, it makes sense to consider outsourcing firms in Davao.

From all indications, the Illumedia Outsourcing Davao Philippines remains on track toward further success and staying at the top as one of the leaders in the global outsourcing market.

Among a number of advantages, is that outsourced employees from Davao offer cultural fit. Filipinos are known for their affinity for Western culture, growing up with a considerable portion of American culture, including significant events and icons. Aside from that, Filipino employees are, in general, hospitable, warm, and attentive.

Also, Filipinos have excellent communication skills, which is very important throughout all sectors and businesses. The Philippine workforce is highly proficient in spoken and written English, including American idioms, because Filipinos grew up with English as one of the main subjects in school.

Another edge that an outsourcing company in Davao has is full support from the government. The administration continues to provide support for the outsourcing industry’s growth by constantly improving the utility infrastructure and the regulatory environment. The Information Technology-Business Process Outsourcing sector is one of the five industries that the government is prioritizing for development. The government also supports outsourcing firms in the Philippines by offering fiscal and non-fiscal incentives to investors like exemptions on local permits and taxes.